SEOUL-SEMICONDUCTOR

On June 8, 2017, Seoul Semiconductor Co., Ltd. and Seoul Viosys Co.,
Ltd. (collectively “Seoul”) announced that they have resolved a patent
litigation that was filed on behalf of Seoul and The Regents of the
University of California against Kmart Corporation. The patent case was
filed in U.S. Federal District Court, asserting infringement of eight
patents based upon Kmart’s sales of Kodak/Spotlite branded filament LED
bulbs.

As part of the settlement, Kmart agreed to stop selling Kodak/Spotlite
branded filament LED bulbs. The asserted eight patents in this
litigation relate to essential structures of filament LED products,
including high CRI enhancement with phosphor combinations, LED epitaxial
growth, LED chip fabrication, multi-chip mounting technology,
omnidirectional LED lamp technology, and Acrich MJT technology.

Other Enforcement Initiatives

In addition to the enforcement action against an LED filament bulb
retailer, Seoul has sent warnings to manufacturers of LED filament bulbs
as well as other LED lighting products to cease any infringement of
Seoul’s patents.

The LED filament bulbs rapidly became popular in the decorative lighting
market. Currently, filament LED end products are manufactured by many
lighting manufacturers, such as Super Trend Lighting, Longstar Lighting,
Topstar Lighting, and Yankon Lighting. Seoul has already put
manufacturers of various LED lighting products on notice of its patents
and requested that sales of any infringing products must be immediately
ceased.

Nam Ki-bum, Executive Vice President of the Research Center at Seoul,
said, “We believe various LED lighting products currently on the market
infringe Seoul’s patents. Now that we have resolved one litigation in
this area, we will devote more resources to actively protecting our
valuable intellectual property rights relating to LED products.” He
added, “Distributors should also take active precautionary measures not
to sell infringing products. As long as such measures have not been
taken, we will continuously take legal action against manufacturers and
distributors relating to suspected infringing products in any countries
where infringement occurs.”

About Seoul Semiconductor:

Seoul
Semiconductor
develops and commercializes light emitting diodes
(LEDs) for automotive, general illumination, specialty lighting, and
backlighting markets. As the fifth-largest LED manufacturer globally,
Seoul Semiconductor holds more than 12,000 patents, offers a wide range
of technologies, and mass produces innovative LED products such as Wicop
– a simpler structured Package-Free LED which provides market leading
color uniformity, cost savings at the fixture level with high lumen
density and allows design flexibility; Acrich, the world's leading
direct AC LED; Acrich MJT multi-junction technology; a proprietary
family of high-voltage LEDs; NanoDriver Series – World’s Smallest 24W DC
LED Drivers and nPola, a new LED product based on GaN-substrate
technology that achieves over ten times the output of conventional LEDs.